During the same period, according to the plea agreement, he made payments to a Huntington hospital official, which awarded Svala and another Svidler company, AA Construction, $2.3 million in contracts for services that were never performed. Neither Columbus nor Huntington was aware of the fraud, prosecutors said.

Tony Hamedany, Columbus Manufacturing's former engineering director, and his brother David Hamedany, Huntington Memorial Hospital's former construction director, have also pleaded guilty to mail fraud.

At the sentencing hearing, prosecutors said, U.S. District Judge Percy Anderson described Svidler as an accomplished businessman, community leader and philanthropist who had "lost his moral compass." He is scheduled to enter prison in February.